Re­nault signs 660mn worth JV deal with Iran

Muscat Daily - - BUSINESS -

(L-R seated): Thierry Bol­lore, deputy direc­tor of com­pet­i­tive­ness at Re­nault; Man­sour Moazami, chair­man of the board of di­rec­tors of IDRO and Kourosh Solouk, deputy direc­tor of the Ira­nian Au­to­mo­bile Importers As­so­ci­a­tion, at­tend a sign­ing cer­e­mony in Tehran on Mon­day

Tehran, Iran - French au­tomaker Re­nault signed on Mon­day a long-awaited joint ven­ture (JV) deal with Iran worth € 660mn to build up to 300,000 cars per year.

The new deal puts Re­nault in part­ner­ship with Iran’s state In­dus­trial Devel­op­ment and Ren­o­va­tion Or­gan­i­sa­tion (IDRO) and pri­vate firm Parto Ne­gin Naseh.

Re­nault will hold a 60 per cent stake with IDRO and Parto Ne­gin Naseh 20 per cent each.

“The first phase of this ac­cord worth € 660mn pro­vides for the an­nual man­u­fac­tur­ing of 150,000 cars,” IDRO head Man­sour Moazami said at a sign­ing cer­e­mony in Tehran.

He said the first cars will roll off the as­sem­bly line in around 18 months.

The new ven­ture will pro­duce Re­nault’s Duster and Sym­bol models at a re­fur­bished fac­tory in Saveh, around 120km south­west of Tehran. A sec­ond, three year phase will start in 2019 with pro­duc­tion ramp­ing up to 300,000 cars per year.

Un­der the deal, 30 per cent of the cars and parts made by the ven­ture will be ex­ported.

“We are happy to sign one of Re­nault’s most his­tor­i­cal con­tracts here,” said Thierry Bol­lore, num­ber two of the French car­maker, at the sign­ing. “This is a unique agree­ment in terms of in­vest­ment, of tech­nol­ogy trans­fer... of the devel­op­ment of Ira­nian tal­ent, and in the creation of a modern en­gi­neer­ing and pro­duc­tion cen­tre,” he added.

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